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According to Inclusive Boards’ 100 Most Influential BAME Leaders in Tech 2020 Report, in the UK tech sector only 19% of workers are from a working-class background compared to 33.3% of the nationwide population.
In contrast, its analysis found that those with parents from a professional-managerial background made up 45% of workers in the sector compared to 31.2% of the nationwide population.
The same story sadly spans myriad other sectors too. Research from the Creative Industries Policy and Evidence Centre (PEC), for example, highlighted class imbalances across the UK’s creative industries; in the UK civil service, only 18% of senior staff come from a low socioeconomic background, according to a report entitled Navigating the Labyrinth. Other analyses suggest much the same when it comes to managerial roles, jobs in law, IT and advertising.
Speaking on the 2017 release of Social Mobility Commission research, which found that people from working class backgrounds who get a professional job are paid an average of £6,800 (17%) less each year than colleagues from more affluent backgrounds, Alan Milburn, the organisation’s chair said: “Too many people from working class backgrounds not only face barriers getting into professions, but also barriers to getting on. How much you are paid should be determined by your ability, not your background.”
But while the issue is a pervasive and complex one, some businesses are taking positive action to try and bridge the divide.
“How much you are paid should be determined by your ability, not your background”
Opening doors
As one of the ‘big four’ accounting organisations covering audit, tax and advisory services, and with a global presence of more than 200,000 employees, it would be understandable if some perceived working there as out of reach and intimidating.
However, this is exactly the idea KPMG UK is trying to dispel through its new partnership with Generation, a global non-profit youth employability programme which trains and places young people in jobs that they may otherwise not have access to, particularly those from underprivileged backgrounds.
The two-year partnership will focus on connecting young talent to technology careers at KPMG, especially roles working in cloud technology, where ‘Cloud Engineers’ will support trainees to help with the upskilling of digital talent.
Lisa Heneghan, Chief Digital Officer of KPMG UK, said of the programme, which is now open to Generation UK’s graduates: “We are committed to improving our diversity and providing unique career opportunities for young people, which is why I am thrilled that we are partnering with Generation.
“A more diverse and inclusive team means a more innovative team, which is particularly important for the tech sector. Having greater diversity improves problem-solving abilities and has been proven to increase productivity and happiness. It also means our clients benefit from a variety of expertise and ideas, resulting in more successful project results.”
In 2021, KPMG became one of the first organisations to publish its socio-economic background pay gaps.
At the time, Jon Holt, Chief Executive of KPMG in the UK, said: “We know that investors, clients, employees and communities want greater transparency from business [...] By taking this important step in reporting and giving more details about the way we run our business, we’re measuring our progress and holding ourselves to account to ensure that opportunities are open to all.”
The partnership with Generation is the first of several schemes aimed at helping the organisation reach its goal to see 29% of UK partners and directors come from a working-class background by 2030.
The overall pay gaps KPMG’s socio-economic pay gap report showed:
Professional versus working class background: median 8.6 percent; mean -1.1%
Professional versus intermediate background: median 2.2 percent; mean - 3.2%
Intermediate versus working class background: median 6.6 percent; mean - 4.5%
Detailed analysis of the data revealed that while KPMG’s senior and junior colleagues were its most socio-economically diverse cohorts, working-class representation in middle management grades was comparatively lower and contributed to the pay gaps.
Doing what’s best for business - and society
The business benefits of a more diverse team are proven, and employers failing to address the socio-economic disparities in and of their workforce are not only failing to create a team reflective of the society their business operates in but are hampering their own business’ potential success.
Moreover, two-thirds (66%) of digital leaders in the UK are finding it difficult to keep pace with change because they simply don’t have the talent they need, according to research from Harvey Nash, something KPMG says represents an obvious opportunity and urgency to support individuals from disadvantaged backgrounds into a career in technology to help close both the diversity and digital skills gaps facing the sector.
Bina Mehta, Chair of KPMG in the UK, says that the publication of data is an important step in the journey towards class parity in the UK.
She said: “The publication of data builds on our concerted efforts over a number of years to track and measure the socio-economic make-up of our workforce.
“It’s only through this focus and level of transparency that we’re able to hold ourselves to account to take targeted action that will help create a fairer and more equitable society.
“I’m a passionate believer that greater diversity in all its aspects improves business performance. Diversity brings fresh thinking and different perspectives to decision making, which in turn delivers better outcomes for our clients.”
